150 percent deductions better than faith-based plan

By David Miller

Guest View
January 12, 2002

President Bush's desire to fund faith-based organizations through his charitable choice initiatives is courageous, but not prudent.

In effect, he recognizes that charities do a better job than government agencies at meeting community needs.

That's good. But Bush's benevolence plan brushes against our patriotic insistence on separation between church and state.

Is there a way of achieving Bush's goal without fostering prejudicial maladies concerning an organization's faith, creed or social orientation?

Yes, there is ? namely, refine the tax code so that donors receive a 150 percent tax deduction for their charitable gifts as opposed to the current 100 percent deduction.

Let me list some advantages of a 150 percent "donor choice" tax deduction vs. the "charitable choice" faith-based initiatives:

• It's simple. We already have the tax system in place. Just change the deduction formula.
• It's non-bureaucratic. The faith-based initiatives will create offices within five cabinets orchestrated by a national director.

The 150 percent deduction method has no director, office or expenses.

• It's democratic.

Let the donors decide which nonprofits deserve our hard-earned money. Who better to decide.

• It's survival of the fittest.

Donor choice forces agencies to prove to the public the veracity of their purpose and the validity of their character. Donors are wise and getting wiser.

• It's a tax relief.

Donor choice vs. charitable choice allows the top 5 percent of wage earners who are bearing 50 percent of our nation's tax burden to create their own tax relief through philanthropic giving.

• It's philanthropic.

A 150 percent gift deduction would show that Washington truly wants Americans to assume a greater charitable responsibility for the needy of our communities. Bush's charitable choice program, in effect, becomes another federally controlled handout system, fraught with serious constitutional potholes.

• It's financially wise.

Lost revenue from the 150 percent deduction would be compensated by eliminating the billions of dollars spent through the faith-based initiative program. Additionally, the donor-based method would encourage a windfall expansion of charitable services, which historically have been proven more effective and efficient than government programs.

• It's politically neutral.

Donor choice reduces the chances of political pork barreling or political involvement in religious matters.

Bush means well, but his method is faulty. Another federal handout system is an impersonal way to give tax dollars to an organization without making the hearts of American people more caring.

Why not encourage Americans to be more philanthropic in their hearts?

For it is with the heart that we can improve the life of a child, relieve the pain of a cancer victim or restore the dignity of an Alzheimer's patient.

Donor choice, not charitable choice, merges dollars and cents with good common sense.

David Miller is president and CEO of Hendrick Home for Children in Abilene, Texas. This column was printed in the Aug. 19, 2001, edition of the Abilene Reporter-News.